GREENVILLE, S.C. - Regional Management Corp . (NYSE: NYSE:RM), a diversified consumer finance company, has announced the launch of a stock repurchase program, with plans to buy back up to $30 million of its outstanding common stock. The authorization by the company's Board of Directors is effective immediately and is set to continue through December 31, 2026. According to InvestingPro data, the company maintains strong financial health with liquid assets exceeding short-term obligations, supporting its capacity for share repurchases.
The repurchase program is part of the company's strategy to manage its capital and return value to shareholders. According to Robert W. Beck, President and CEO of Regional Management Corp., the decision reflects the company's strong performance, liquidity, and confidence in its future prospects. The buybacks may occur in the open market, through privately negotiated transactions, or other methods in compliance with federal securities laws.
Alongside the repurchase program, the company has outlined its growth expectations for 2025, targeting a 10% to 12% increase in ending net receivables, an uptick from the approximately 6% growth rate in 2024. This acceleration in growth is attributed to the company's positive credit performance and favorable macroeconomic conditions, such as lower inflation and low unemployment rates. InvestingPro analysis indicates that net income is expected to grow this year, with the company maintaining profitability over the last twelve months.
Regional Management Corp. has expanded its footprint to eight new states since 2020, enlarging its addressable market by over 80%. The company plans to continue this expansion, with a focus on its auto-secured and small loan portfolios, which are expected to drive portfolio growth. Additionally, the company is set to open 10 new branches in the fourth quarter of 2024 and the first quarter of 2025, with plans for up to another 10 in the second half of 2025.
The timing and volume of the repurchases under the stock buyback program will depend on various factors, including market conditions, legal requirements, and share price. The program may be modified, suspended, or discontinued at any time without prior notice.
Regional Management Corp. provides installment loan products primarily to customers with limited access to consumer credit and operates under the name Regional Finance in 19 states across the United States. The company's loan products are secured on a fixed-rate, fixed-term basis with fully amortizing equal monthly installment payments. InvestingPro data shows the stock has exhibited price volatility, which could present opportunities for the buyback program. Investors can access additional insights, including 6 key ProTips and comprehensive financial analysis, through InvestingPro's detailed research report.
Investors are cautioned that this press release contains forward-looking statements, which involve risks and uncertainties and are subject to change. The company advises not to place undue reliance on these forward-looking statements, which speak only as of their date of publication. This news is based on a press release statement.
In other recent news, Regional Management Corp. discussed its third-quarter financial performance and future business prospects during its earnings conference call. The company released its earnings announcement and supplemental presentation, which included forward-looking statements based on current management expectations. However, these expectations are subject to change due to various factors, including risks and uncertainties that could materially impact financial results.
During the call, there was an opportunity for participants to ask questions about the company's performance and expectations. Regional Management Corp. communicated a cautious outlook, suggesting that while they anticipate positive performance, this is not immune to the unpredictable nature of the market and other external factors.
Despite the inherent uncertainties in forecasting, the company remains focused on navigating the dynamic market conditions and adapting its strategies for upcoming quarters. These are the recent developments for Regional Management Corp.
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